2024 rally makes investors richer by Rs 110.57 lakh cr

New Delhi: Investors’ wealth surged by a whopping Rs110.57 lakh crore so far this year, driven by a remarkable rally in the stock market, where the benchmark indices shattered many records.The market capitalisation(mcap) of BSE-listed firms soared Rs110,57,617.4 crore to Rs4,74,86,463.65 crore ($5.67 trillion) so far this year. The market valuation of all listed firms at the BSE hit an all-time high of Rs477.93 lakh crore on September 27. The BSE Sensex jumped 12,026.03 points or 16.64 per cent so far in 2024, giving handsome returns to investors. The benchmark scaled its all-time peak of 85,978.25 on September 27, this year, breaching many milestones. Analysts attributed the sharp rally in the markets to robust domestic liquidity along with strong fundamentals of the Indian economy.

“One of the key highlights of this year is the robust domestic liquidity, driven by record inflows into the mutual fund industry,” said Santosh Meena, head (research), Swastika Investmart Ltd. Despite selling pressure from FIIs (Foreign Institutional Investors), the Indian equity markets reached record highs, delivering solid gains, he said. “Notably, the midcap and smallcap indices outperformed and several stocks turned into multibaggers, rewarding retail investors handsomely,” Meena added.

At the beginning of the year, the BSE Sensex was at 72,271.94 level and the benchmark gauge is now at 84,266.29. Overall, 2024 has been an outstanding year for retail investors, marked by strong market performance, especially in midcaps and smallcaps, backed by domestic liquidity and resilience in the face of FII outflows, he said.

The BSE midcap gauge has surged 12,645.24 points or 34.32 per cent so far this year, while the smallcap index soared 14,777.09 points or 34.62 per cent.

“The sharp rally in recent weeks was the outcome of Fed rate cut and hopes that RBI would also follow suit in its policy meeting,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.

The 30-share BSE benchmark ended above the 83,000-level for the first time on September 17. It ended above the historic 84,000-mark for first time on September 20. The benchmark finished above the 85,000-level on September 25. “Global markets, despite ongoing geopolitical tensions, have also been supportive. A significant positive trigger for emerging markets like India has been the beginning of the interest rate cut cycle in the US. “This has boosted investor sentiment and liquidity flow into riskier assets. Additionally, crude oil prices remained relatively low throughout the year, despite geopolitical uncertainties, providing further support to the Indian economy by easing inflationary pressures and improving the market outlook,” Meena added.